Aye Finance IPO: A New Chapter in Micro Enterprise Lending

Aye Finance's IPO received 97% subscription with bids surpassing the offered shares, highlighting strong interest from qualified institutional buyers. The company, valued at Rs 3,184 crore, plans to use proceeds to bolster its capital base, mainly supporting micro and small enterprises across India.

The initial public offering (IPO) of Aye Finance, a non-banking financial company (NBFC), garnered a 97% subscription rate on the final day of bidding, demonstrating robust interest from investors. Data from the NSE indicated that bids were received for 4,42,21,288 shares, against an offer of 4,55,32,785 shares.

Qualified institutional buyers (QIBs) showed strong enthusiasm, with their portion subscribed 1.5 times, whereas retail individual investors and non-institutional investors saw 77% and 5% subscriptions, respectively. The IPO, priced between Rs 122 and Rs 129 per share, is valued at Rs 3,184 crore at the upper range, while the total issue amounts to Rs 1,010 crore.

Proceeds are intended to increase Aye Finance's capital for business and asset expansion. The NBFC focuses on serving micro and small enterprises that have limited access to traditional banking services. Anticipating listing on the BSE and NSE on February 16, Aye Finance boasts operations in 18 states and three Union Territories, managing an asset base of Rs 6,027.6 crore.

(With inputs from agencies.)